The six-year (non-call two) FRNs and the seven-year (non-call three) fixed-rate notes come via joint bookrunners Deutsche Bank (B&D), Credit Suisse, and Morgan Stanley. Proceeds will be used to refinance debt.
Roadshows begin with a breakfast in London tomorrow and Wednesday, followed by breakfast meetings in Paris and lunch meetings in Frankfurt on Thursday, with breakfast meetings in Amsterdam on Friday. Pricing is expected thereafter.
Concurrent to the offering, the company has launched an exchange offer for its secured E+262.5 notes due 2014. Noteholders have been offered to exchange their holdings for the new FRNs due 2018.
The manufacturer of coated wood-free paper was out to market at the end of last year, with a cash tender offer for its existing E+400 unsecured notes due 2014. In December, €12.4 million was accepted for purchase, after purchasing €10.9 million of the issue in September. There is roughly €130.5 million outstanding under the unsecured notes, and €598 million outstanding under the E+262.5 secured notes due 2014.
The company, which is owned by CVC Capital Partners, was created from the 2001 merger of three European paper companies: Cartiere del Garda, Smurfit Condat, and Torraspapel. Lecta terminated discussions for the sale of the company by CVC to a third party in late September. It is rated B+/B1. – Sohko Fujimoto/Luke Millar